What are the Fly To Fit franchisee's obligations upon termination or non-renewal of the franchise agreement?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| than 5 consecutive days; three defaults in 12 months; cross-termination; charge or conviction of, or plea to a felony, or commission or accusation of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. MUDA: failure to meet development schedule; violation of franchise agreement or other agreement which gives us the right to terminate it. | ||
| i. Franchisee's obligations on termination/non renewal | FA: §§ 14.3 – 14.6 MUDA: none | Pay all amounts due; return Manual and proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 35–39)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Item 17 outlines the franchisee's obligations upon termination or non-renewal of the franchise agreement. Specifically, the franchisee must fulfill several requirements. These include paying all outstanding amounts owed to Fly To Fit. Additionally, the franchisee is required to return the operations manual and any other proprietary items belonging to Fly To Fit.
Furthermore, the franchisee must notify and transfer service from phone, internet, and other relevant service providers. The franchisee is also obligated to cease conducting business as a Fly To Fit franchise. This includes removing any identification or signage that associates the business with the Fly To Fit brand.
Finally, the franchise agreement may include a purchase option, allowing Fly To Fit to buy back the franchise from the franchisee upon termination or non-renewal. It is important for prospective franchisees to carefully review Sections 14.3 through 14.6 of the Franchise Agreement to fully understand their obligations in the event of termination or non-renewal.